Records on a Fleet of Trucks Reveal That the Average

question 41

Multiple Choice

Records on a fleet of trucks reveal that the average life of a set of spark plugs is normally distributed with a mean of 35,600 kilometres. A manufacturer of spark plugs claims that its plugs have an average life in excess of 35,600 kilometres. The fleet owner purchased 18 sets and found that the sample average life was 37,700 kilometres, the sample standard deviation was 2415 kilometres and the computed t = 3.677.

• A) Based on these findings, there is enough evidence to accept the manufacturer's claim at the 0.05 level.
• B) Based on these findings, there is NOT enough evidence to accept the manufacturer's claim at the 0.05 level.
• C) Based on these findings, there is enough evidence to accept the manufacturer's claim at the 0.05 level, but NOT at the 0.01 level.
• D) Based on these findings, there is NOT enough evidence to accept the manufacturer's claim at the 0.01 level.
• E) Based on these findings, there in NOT enough evidence to accept the manufacturer's claim at either the 0.05 or the 0.01 level.

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Definitions:

Ethical Issues

Moral challenges and dilemmas that arise in the context of professional and personal conduct.

Scanlon Plan

An incentive plan designed to encourage cooperation, involvement, and sharing of benefits among employees through improved performance and productivity.

Gainsharing

Group incentive program that measures improvements in productivity and effectiveness objectives and distributes a portion of each gain to employees.